Delivery Platforms for Restaurants in the USA: Why First-Party Delivery is Best for Small Businesses

Online ordering and delivery have become a lifeline for restaurants across the United States, especially for small businesses, local and regional chains, and independent eateries. In the wake of shifting consumer habits (accelerated by the pandemic), offering takeout and delivery is no longer optional – it’s expected. In fact, 60% of U.S. consumers order delivery or takeout at least once a week. For restaurant owners, embracing online ordering can unlock new revenue streams: 60% of operators say adding delivery generated incremental sales for their business. Customers often spend more per order online than in person (pizza chains saw an 18% higher ticket on online orders vs. phone-in), and digital ordering and delivery have grown 300% faster than dine-in traffic since 2014. In short, online ordering expands reach, boosts sales, and meets modern diner expectations – critical benefits for independent restaurants looking to grow.

However, not all delivery platforms are created equal. Many small and mid-sized restaurants first turn to third-party delivery apps to tap into the online market. These marketplace apps (like Uber Eats, DoorDash, and Grubhub) offer instant exposure to millions of users, but at a steep cost to profitability and control. As we’ll explore, first-party delivery services – meaning online ordering and delivery run directly by the restaurant (with the help of enabling platforms) – present a far better alternative for those who want to keep more profits, own their customer data, and maintain their brand’s integrity. This article examines the benefits of online ordering for restaurants, analyzes why first-party delivery outshines third-party apps (in terms of cost savings, customer data ownership, brand control, and profit retention), and compares leading delivery platforms in the USA with their pros and cons. Finally, we’ll make a compelling case for why Sauce is the ideal first-party delivery solution for restaurants aiming to optimize direct online ordering and delivery operations.

The Benefits of Online Ordering & Delivery for Small Restaurants

For small and independent restaurants, moving into online ordering and delivery can feel daunting, but the benefits are substantial:

• Broader Customer Reach & Convenience: Offering delivery allows local eateries to reach customers beyond their immediate neighborhood, including those who prefer dining at home. With 77% of consumers having ordered food for delivery, being accessible online means you won’t miss out on the large segment of diners who check apps or websites when hungry. Convenience is king – 87% of Americans using third-party food delivery say it makes their lives easier, so providing an easy online ordering option helps capture this demand.

• Increased Sales & Larger Tickets: Online availability often translates to higher order volumes and sizes. Many restaurants report that adding delivery produced new revenue that wouldn’t exist otherwise. Customers also tend to order more items online; one study noted consumers spend at least $50 per online food order on average, and large pizza chains saw online orders boost customer spend by 18% compared to phone orders. This can significantly lift a small restaurant’s average ticket size.

• Improved Operational Efficiency: Digital orders arrive in a structured format, reducing phone call interruptions and order errors (especially when integrated with the POS). Staff can focus on food prep while the online system handles order intake and payments automatically. Some operators also find it easier to manage peak demand by smoothing orders through scheduled pickups or deliveries.

• Competitive Necessity & Customer Preference: Perhaps most importantly, offering online ordering keeps you competitive. Diners have grown accustomed to the ease of clicking a few buttons to get their favorite local meal delivered. If hungry consumers can’t order from your restaurant online, they might go elsewhere. Notably, 70% of consumers say they’d rather order directly from a restaurant (to ensure their money goes straight to the business, not a middleman). Having your own online ordering link or app caters to this preference and builds goodwill with customers who want to support local establishments.

In summary, online ordering and delivery can drive growth and loyalty for small restaurants by meeting customers where they are (on the web and on their phones). The next question is how to enable it – and that’s where the choice between third-party vs. first-party delivery platforms comes into play.

Third-Party vs. First-Party Delivery: Key Differences

When launching delivery, restaurant owners can either partner with third-party delivery apps or set up their own first-party delivery system (often using a specialized platform). It’s important to understand the differences:

• Third-Party Delivery Apps: These are marketplace platforms like DoorDash, Uber Eats, Grubhub, etc., which list many restaurants in one app. Customers browse and place orders through the app, and the platform’s network of gig drivers handles delivery. The appeal is instant access to a large user base and a turnkey logistics network. However, third-party services charge hefty commission fees on each order (usually 15%–30% of the order value) and often withhold customer information, since the order technically comes through their system. The restaurant appears on the app, but the customer relationship is owned by the platform, not by the restaurant.

• First-Party Delivery: This refers to orders that come directly to the restaurant through its own website, mobile app, or phone, with delivery arranged by the restaurant itself or via an enabling service. In a first-party model, the restaurant owns the entire customer experience – from ordering to delivery. You keep 100% of the menu price (no marketplace commission) and you capture the customer’s data (name, phone, email, order history). Traditionally, first-party delivery meant hiring in-house drivers, but nowadays restaurants can use delivery-as-a-service providers or platforms like Sauce that supply a fleet of drivers on-demand without taking a cut of your sales. Essentially, first-party solutions give restaurants full control and data ownership, using technology to mimic what big apps offer, but under the restaurant’s brand.

Both approaches aim to get food to customers’ doors, but the implications for a restaurant’s bottom line and brand are dramatically different. Next, we’ll analyze why first-party delivery is often the smarter choice for small and independent restaurants.

Why First-Party Delivery Beats Third-Party Apps

Partnering with third-party apps can jump-start online sales, but it comes at significant cost and risk. Here’s why first-party delivery services are a better alternative on multiple fronts:

1. Cost Savings and Profit Retention

For any restaurant, especially a small business with thin margins, the economics of delivery are critical. Third-party platforms typically charge commissions ranging from about 15% to 30% per order. On top of that, there may be additional service fees or marketing fees for better visibility. These charges can wipe out the profit on a sale. Consider that the average restaurant profit margin is only ~6% – a 20-30% commission on a delivery order means the restaurant is actually losing money on that order . In other words, a $50 order via a third-party app might cost the restaurant $10–$15 in fees, far exceeding the few dollars of profit that order would normally generate. This is unsustainable for small operators.

First-party delivery, by contrast, lets restaurants keep the full sale (minus payment processing and delivery driver costs). There is no middleman taking a cut of your menu prices. Restaurants that shift from third-party to first-party often see immediate cost benefits – one industry report found that by switching to in-house ordering/delivery, restaurants save roughly 30–70% on each order compared to using a third-party service. Those savings go straight to your bottom line or can be reinvested in quality ingredients, staff, or marketing. Ultimately, first-party delivery protects your profit margin and makes each delivery order actually worthwhile financially (instead of being just a volume play). While there may be some costs to implement your own system (subscription fees for a platform like ChowNow, or pay-as-you-go driver fees), these are typically far less than the perpetual commission cut taken by third-party apps.

2. Owning Customer Data and Relationship

Third-party apps position themselves between your restaurant and your customers. When someone orders via a big delivery app, you often receive minimal information – maybe just the customer’s first name and order details needed to make the food. The app retains the rich data (email, order history, preferences) and you lose direct contact with that patron. This is a huge downside because in the restaurant industry, data drives marketing and loyalty. If you don’t know who your customers are, you can’t effectively re-engage them with promotions, loyalty programs, or personalized offers. In fact, 43% of restaurant professionals believe third-party apps interfere with the direct customer relationship by withholding data.

With first-party online ordering, you own the guest data and the direct relationship. You know who ordered, what they like, and how to reach them. This enables you to build a customer database for email marketing, text promotions, and loyalty rewards that drive repeat business. And those repeat orders can be golden – studies show that customers who place an online order directly with a restaurant will visit or order again 67% more frequently than those who haven’t. By cutting out the intermediary, you keep the connection alive.

Additionally, when customers order through your branded channels (your website or dedicated app), their loyalty stays with your brand, not a third party. One pitfall of third-party marketplaces is that diners often develop loyalty to the app itself (chasing convenience or subscription perks like DoorDash’s DashPass) rather than to any particular restaurant. If your loyal customer opens an aggregator app, they’ll see not only your eatery but also a list of competitors offering similar cuisine – and there’s a risk they get enticed elsewhere, especially if the platform pushes promotions from another restaurant. By owning the customer’s journey from start to finish, you can keep their focus on your restaurant’s brand, story, and hospitality, fostering a direct bond that third parties can’t replicate.

3. Brand Control and Customer Experience

Delivering an excellent customer experience is just as important with off-premise dining as it is in your dining room. When you hand over deliveries to third-party services, you lose control over critical aspects of service quality. The food travels with a driver who isn’t your employee, and you have no say in how long they take, how they handle the food, or their professionalism at drop-off. If something goes wrong – a late delivery, spilled soup, or a rude interaction – your restaurant often takes the blame in the customer’s mind. In fact, 80% of customers say they’ll blame the restaurant (not the delivery app) if an order is incorrect or delayed. That means your reputation is in someone else’s hands every time an order leaves with a gig driver.

First-party delivery gives you far greater control over the end-to-end experience. You can set the delivery radius and timing that ensure food arrives fresh, choose packaging that maintains quality, and train dedicated staff or drivers (if you have them) on proper handling and service etiquette. Even if you use an on-demand driver network for last-mile delivery, it can often be set up so that it’s integrated with your system and standards. Some first-party platforms allow you to provide instructions to drivers or rate them, ensuring accountability. Moreover, the ordering interface itself is under your control in a first-party setup – you can design your online menu, showcase your brand’s colors and voice, and even upsell items or promotions specific to your business. This branded ordering experience reinforces your identity (versus the generic look of a marketplace app).

There’s also the matter of customer support. With third-party orders, if a customer has an issue (like wanting to modify an order or report a problem), they often have to go through the app’s customer service, not directly to you. This adds another layer of separation. By contrast, first-party ordering means you can communicate directly with your customer at every stage – sending order confirmations, providing delivery tracking, and handling any feedback or issues first-hand. Such responsiveness and personal touch can turn a one-time buyer into a loyal regular. In summary, retaining control through first-party delivery helps ensure the quality, consistency, and service that your brand is known for carries through to the delivery experience, resulting in happier customers and better reviews.

4. Higher Long-Term Profitability & Sustainability

Beyond the immediate savings on fees, first-party delivery sets small restaurants up for more sustainable success long-term. When you own your sales channel, you’re not subject to the whims of a third-party platform – whether it’s fee hikes, changes in algorithms that affect your visibility, or contract terms that could become unfavorable. We’ve seen scenarios where relying too much on third-party marketplaces can be risky; for example, if an app decides to feature “virtual brands” or ghost kitchens, your restaurant might get buried in results, or if they impose new fees/costs, you have little recourse. Building your own online customer base insulates you from these external shocks.

Financially, the difference compounds over time. Suppose a restaurant does 100 delivery orders a week at $30 each. With a 25% commission to a third party, that’s $750/week ($3,000+ a month) paid out to the app – essentially an entire employee’s salary or a huge chunk of rent. In a first-party model, that money stays with the restaurant. Over a year, the retained revenue can be tens of thousands of dollars, which can fund expansion, marketing, or simply improve the owner’s livelihood. Moreover, by capturing your own customer data and nurturing repeat business, you increase customer lifetime value. Instead of “renting” customers from apps each time (and paying a toll for the privilege), you’re building a base of direct customers who order again and again at no extra cost. This makes your business more resilient and profitable over the long run.

It’s also worth noting that most customers actually prefer to support restaurants directly when given an easy option. A recent survey found 70% of diners would rather use a restaurant’s own website or app instead of a third-party service, specifically because they know it helps the restaurant earn more. By promoting your own online ordering (and perhaps educating patrons that it’s better for you), you can gradually steer loyal customers to order direct. Many independent restaurants use strategies like small discounts for first-party orders, loyalty points, or simply messaging like “Order direct on our site for the best price!” to encourage this shift. When customers are on board, everyone wins: they often pay lower fees and get a closer connection to their favorite local spot, and you retain the full profit.

In summary, first-party delivery empowers restaurants to save money, build stronger customer relationships, and safeguard their brand – crucial advantages for small and local businesses. That said, implementing a first-party solution requires choosing the right platform to support your online ordering and delivery needs. Next, let’s compare some of the leading delivery platforms and services available to restaurants in the USA, and how they stack up in helping restaurants achieve these goals.

Sauce – Empowering Restaurants with First-Party Delivery

For independent restaurants and small chains looking to thrive in the online ordering era, the evidence is clear: first-party delivery is the smarter, more sustainable path forward. It lets you keep your hard-earned revenue, build direct customer relationships, and deliver your food with the quality and care your brand is known for, all of which are essential for long-term success. The only remaining question is how to implement a first-party solution without adding complexity or cost. This is exactly where Sauce shines as an ideal partner.

Sauce combines the advantages of first-party ordering with a fully managed delivery infrastructure, making it an all-in-one solution for restaurants that want to take control of their online business. By choosing Sauce, a restaurant gets to launch commission-free online ordering on their own website and social channels (so customers order directly from you), while Sauce works behind the scenes to coordinate deliveries and support. The impact on your bottom line is immediate – no 20-30% commission checks to third parties, which means you retain the profits from each sale. Over time, this can be transformative for a small business, turning delivery from a loss-leader into a profitable venture.

Beyond cost savings, Sauce helps you own your customer data and grow your customer base. Every order that comes in is an opportunity to understand and reconnect with that guest. Sauce provides tools (and even expert guidance) for marketing, SEO, and customer retention, so that your direct ordering channel isn’t just a one-and-done platform, but a growing ecosystem of loyal patrons. You can run targeted promotions, set up a loyalty program, solicit feedback, and ensure that your online customers keep coming back – all without a middleman intercepting the relationship.

Quality and reliability are also at the core of Sauce’s offering. Restaurants get access to an unlimited network of delivery drivers without having to manage their own fleet. This means whether you’re a single-location family restaurant or a small regional chain, you can scale deliveries during peak times with ease – there’s always a driver available when you need one. Customers enjoy live order tracking and timely service, and if there’s ever an issue, Sauce’s 24/7 support team is there to resolve it. From the customer’s perspective, they get a seamless experience that rivals (or exceeds) the big apps, but they’re interacting with your brand the whole way through. From the restaurant’s perspective, you get peace of mind that someone has your back in managing the logistics and any hiccups, allowing you to focus on preparing great food.

Crucially, Sauce’s model is built around maximizing restaurant profitability and autonomy. Unlike some third-party “storefront” solutions, Sauce doesn’t aim to funnel you into an upsell for their marketplace or reclaim your customers – the success metric for Sauce is your online sales growth. It’s a true partnership that reconnects restaurants with their online customers. As a first-party delivery platform, Sauce empowers even the smallest restaurants to compete on a level playing field, offering the convenience today’s diners expect while preserving the unique charm and personal touch that made those diners fans in the first place.

In conclusion, the best delivery platform for restaurants in the USA – especially local, independent establishments – is one that lets the restaurant own the process, the profits, and the customer relationship. First-party delivery is the vehicle to achieve that, and Sauce is the engine propelling it. By choosing Sauce as your first-party delivery solution, you’re investing in the long-term health of your business: you’ll save on costs, strengthen your brand, and build a loyal customer community that will keep ordering directly for years to come. In an industry where every dollar and every diner matters, that’s a recipe for success that no third-party app can match. Bon appétit to taking control of your delivery destiny!